Executive Summary
James Hardie Industries plc, together with its subsidiaries, manufactures and sells fiber cement siding and backer board products primarily in the United States, Canada, Australia, New Zealand, the Philippines, and Europe. More Details
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with adequate balance sheet.
Similar Companies
Share Price & News
How has James Hardie Industries's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: JHX is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: JHX's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
2.4%
JHX
1.3%
AU Basic Materials
2.0%
AU Market
1 Year Return
19.7%
JHX
8.0%
AU Basic Materials
-0.4%
AU Market
Return vs Industry: JHX exceeded the Australian Basic Materials industry which returned 8% over the past year.
Return vs Market: JHX exceeded the Australian Market which returned -0.4% over the past year.
Shareholder returns
| JHX | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | 1.3% | 2.0% |
| 30 Day | -2.2% | 0.8% | 4.4% |
| 90 Day | 4.9% | 5.4% | 12.1% |
| 1 Year | 19.7%19.7% | 9.7%8.0% | 3.0%-0.4% |
| 3 Year | 87.3%77.7% | 18.3%7.3% | 27.3%11.6% |
| 5 Year | 161.8%136.3% | 77.2%49.1% | 70.2%35.9% |
Long-Term Price Volatility Vs. Market
How volatile is James Hardie Industries's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
James Hardie Industries (ASX:JHX) Has Gifted Shareholders With A Fantastic 164% Total Return On Their Investment3 weeks ago | Simply Wall St
Is James Hardie Industries plc (ASX:JHX) Expensive For A Reason? A Look At Its Intrinsic Value1 month ago | Simply Wall St
Are Insiders Buying James Hardie Industries plc (ASX:JHX) Stock?Valuation
Is James Hardie Industries undervalued compared to its fair value and its price relative to the market?
87.77x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: JHX (A$37.78) is trading above our estimate of fair value (A$31.02)
Significantly Below Fair Value: JHX is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: JHX is poor value based on its PE Ratio (87.8x) compared to the XX Basic Materials industry average (16.2x).
PE vs Market: JHX is poor value based on its PE Ratio (87.8x) compared to the Australian market (23.2x).
Price to Earnings Growth Ratio
PEG Ratio: JHX is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: JHX is overvalued based on its PB Ratio (11x) compared to the AU Basic Materials industry average (2.8x).
Next Steps
Future Growth
How is James Hardie Industries forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
30.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: JHX's forecast earnings growth (30.6% per year) is above the savings rate (2%).
Earnings vs Market: JHX's earnings (30.6% per year) are forecast to grow faster than the Australian market (18.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: JHX's revenue (9% per year) is forecast to grow faster than the Australian market (5.2% per year).
High Growth Revenue: JHX's revenue (9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: JHX's Return on Equity is forecast to be high in 3 years time (28.9%)
Next Steps
Past Performance
How has James Hardie Industries performed over the past 5 years?
-7.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: JHX has a large one-off loss of $92.6M impacting its September 30 2020 financial results.
Growing Profit Margin: JHX's current net profit margins (5.6%) are lower than last year (10.2%).
Past Earnings Growth Analysis
Earnings Trend: JHX's earnings have declined by 7.4% per year over the past 5 years.
Accelerating Growth: JHX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: JHX had negative earnings growth (-42.6%) over the past year, making it difficult to compare to the Basic Materials industry average (3%).
Return on Equity
High ROE: JHX's Return on Equity (12.5%) is considered low.
Next Steps
Financial Health
How is James Hardie Industries's financial position?
Financial Position Analysis
Short Term Liabilities: JHX's short term assets ($1.0B) exceed its short term liabilities ($545.2M).
Long Term Liabilities: JHX's short term assets ($1.0B) do not cover its long term liabilities ($2.5B).
Debt to Equity History and Analysis
Debt Level: JHX's debt to equity ratio (106.3%) is considered high.
Reducing Debt: JHX had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: JHX's debt is well covered by operating cash flow (49.1%).
Interest Coverage: JHX's interest payments on its debt are well covered by EBIT (10x coverage).
Balance Sheet
Next Steps
Dividend
What is James Hardie Industries's current dividend yield, its reliability and sustainability?
1.78%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate JHX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate JHX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if JHX's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if JHX's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: JHX is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of JHX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Jack Truong (58 yo)
2yrs
Tenure
US$6,068,263
Compensation
Dr. Jack G. Truong, BS, Ph.D., has been Chief Executive Officer and Director at James Hardie Industries plc since Janauary 31, 2019 and was its President and Chief Operating Officer since 2018. Dr. Truong ...
CEO Compensation Analysis
Compensation vs Market: Jack's total compensation ($USD6.07M) is above average for companies of similar size in the Australian market ($USD3.74M).
Compensation vs Earnings: Jack's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2yrs | US$6.07m | 0.028% $ 4.7m | |
| Senior VP & CFO | 0.92yr | US$1.25m | 0.0042% $ 702.4k | |
| Executive Vice President of Operations | 4.42yrs | US$1.43m | no data | |
| General Counsel | 9.58yrs | US$1.59m | 0.015% $ 2.4m | |
| Executive Vice President of North America Commercial | 5.25yrs | US$2.68m | 0.015% $ 2.6m | |
| Chief Human Resource Officer | 1.67yrs | no data | no data | |
| Executive Vice President of End-to-End Supply Chain | 0.50yr | no data | no data | |
| Senior Vice President of North America Sales | 1.92yrs | no data | no data |
2.0yrs
Average Tenure
53yo
Average Age
Experienced Management: JHX's management team is not considered experienced ( 2 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2yrs | US$6.07m | 0.028% $ 4.7m | |
| Independent Non-Executive Director | 0.67yr | no data | 0.00077% $ 129.1k | |
| Independent Chairman | 13yrs | US$1.09m | 0.0099% $ 1.7m | |
| Independent Non-Executive Director | 0.67yr | no data | no data | |
| Independent Non-Executive Director | 1.17yrs | US$102.67k | 0.0014% $ 226.3k | |
| Independent Non Executive Director | 12.67yrs | US$424.27k | 0.0043% $ 727.5k | |
| Independent Non-Executive Director | 2.17yrs | US$751.38k | 0.0040% $ 678.9k | |
| Independent Non-Executive Director | 5.83yrs | US$225.36k | 0.00088% $ 147.5k | |
| Independent Non-Executive Director | 2.92yrs | US$253.18k | 0.00054% $ 90.5k | |
| Independent Non Executive Director | 2.17yrs | US$232.41k | no data |
2.2yrs
Average Tenure
62.5yo
Average Age
Experienced Board: JHX's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
James Hardie Industries plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: James Hardie Industries plc
- Ticker: JHX
- Exchange: ASX
- Founded: 1888
- Industry: Construction Materials
- Sector: Materials
- Market Cap: AU$16.763b
- Shares outstanding: 444.17m
- Website: https://www.ir.jameshardie.com.au
Number of Employees
Location
- James Hardie Industries plc
- Europa House
- 2nd Floor
- Dublin
- Co. Dublin
- 2
- Ireland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| JHX | NYSE (New York Stock Exchange) | SPONSORED ADR | US | USD | Oct 1995 | |
| JHX | ASX (Australian Securities Exchange) | Yes | CDI(CHESS DEPOSITARY INTERESTS) | AU | AUD | Oct 2001 |
| JHIU.F | OTCPK (Pink Sheets LLC) | Yes | CDI(CHESS DEPOSITARY INTERESTS) | US | USD | Oct 2001 |
| JHA | DB (Deutsche Boerse AG) | Yes | CDI(CHESS DEPOSITARY INTERESTS) | DE | EUR | Oct 2001 |
| JHX | CHIA (Chi-X Australia) | Yes | CDI(CHESS DEPOSITARY INTERESTS) | AU | AUD | Oct 2001 |
Biography
James Hardie Industries plc, together with its subsidiaries, manufactures and sells fiber cement siding and backer board products primarily in the United States, Canada, Australia, New Zealand, the Philipp...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/22 07:02 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.